Best CD, MM Rates & Bank Special Deals Thread 2023 - Please post updates here

[Car-Guy]

So what do you guys (and gals) think (if you care to go out on a limb) the Fed is going to do next week? IMO, dropping rates is unlikely, pausing/holding (maybe), increasing rates another 1/4 point is likely. I'd give the pause a 40% chance and raising rates another 1/4 point about 60% chance. Also, at this point in time, I don't think there will be any rate reductions this year. But what do I really know!

With that said, I'm putting the funds from my maturing CD's (several in June) into SWVXX/SNAXX and holding out for even higher CD rates that I think are coming soon. I had been planning to just roll over maturing CD's into new current rate CD's but with SWVXX/SNAXX pay so well and still going up, I'm holding out for better CD rates. A pretty low risk game, IMO.

 

[RetiredAndLovingIt]

I just got an e-mail from Discoverbank, my savings are now earning 4% APY

 

[jldavid47]

So what do you guys (and gals) think (if you care to go out on a limb) the Fed is going to do next week? IMO, dropping rates is unlikely, pausing/holding (maybe), increasing rates another 1/4 point is likely. I'd give the pause a 40% chance and raising rates another 1/4 point about 60% chance. Also, at this point in time, I don't think there will be any rate reductions this year. But what do I really know!

With that said, I'm putting the funds from my maturing CD's (several in June) into SWVXX/SNAXX and holding out for even higher CD rates that I think are coming soon. I had been planning to just roll over maturing CD's into new current rate CD's but with SWVXX/SNAXX pay so well and still going up, I'm holding out for better CD rates. A pretty low risk game, IMO.

I don't care what the Fed does. I have a long term view of the interest rate environment and am executing my strategy based on that.

 

[stephenson]

Well, I certainly care what the Fed does!

 

[Car-Guy]

^^^^^ Me too...

I don't care what the Fed does. I have a long term view of the interest rate environment and am executing my strategy based on that.

At my age, I no longer have a long term view on any investments. Unless you consider 12 to 36 mos long term.

 

[JohnnyBGoode]

Ally just bumped their 18-month CD to 5%. Their 12-month is still at 4.5% - looks like they are targeting the 18-month CD as their sweet spot.

 

[Dtail]

Ally just bumped their 18-month CD to 5%. Their 12-month is still at 4.5% - looks like they are targeting the 18-month CD as their sweet spot.

Interesting as one can buy a brokered Ally Bank CD on Fidelity for 18 months for 5.15%. Non callable.

 

[Freedom56]

Be patient, even better CD yields that what we saw in March are coming. With MM funds at 5% and still rising, there is no need to rush in. Medium to long term treasury yields are still too low and market forces will eventually cause those yields to tick up slowly.

 

[Another Reader]

I picked up a few 9 month B of A CD's at 5.3% just now. Fido and Vanguard both have them. I have a couple of older Zion CD's but they are not the strongest bank and I would rather not deal with the FDIC in the event of a failure.

 

[Sue J]

DiscoverBank is now 4.0%, up from 3.9%.

 

[mn54]

fidelity MM FZDXX was 4.9% yesterday

 

[John Galt III]

Andrews 5.75% for 7.5 months


https://www.andrewsfcu.org/Learn/Resources/Rates/Share-Certificate-Rates

Gone ! Lasted less than 1 week.

 

[NomDeER]

Be patient, even better CD yields that what we saw in March are coming. With MM funds at 5% and still rising, there is no need to rush in. Medium to long term treasury yields are still too low and market forces will eventually cause those yields to tick up slowly.

You think that the higher CD yields will be in the medium to long term ranges at 5% plus? When do you think this is likely to happen and why? I realize that the yield curve is inverted but why wouldn't it just be that the short-term yields eventually will come down? I'm not challenging your position. Just trying to understand.

 

[Healthy Lifestyle]

ML MMF rate as of yesterday.
BlackRock Liquidity Funds: Treasury Trust --- Institutional Class5, 6, ** TTTXX 5.07%

I have a nice cash position sitting there for now!

 

[BruinBones]

I saw that NFCU is now offering a 12-month Special Easy Start Certificate at 4.85% (must have direct deposit, max only $3k, $50 bonus after three $50 transfers after initial deposit). Not for me since I was able to score a better one there earlier this year (15-month, 4.88%, max $250K).

 

[Freedom56]

You think that the higher CD yields will be in the medium to long term ranges at 5% plus? When do you think this is likely to happen and why? I realize that the yield curve is inverted but why wouldn't it just be that the short-term yields eventually will come down? I'm not challenging your position. Just trying to understand.

I believe the treasury yield curve will flatten (i.e. medium to long term yield will rise), before the curve normalizes. Many Fed officials have stated since last summer that the Fed funds rates will stay elevated through the end of 2024. The economy is still very strong. I believe we will be breaking out to higher yields for 1-5 year CDs in the coming months.

 

[Drake3287]

So what do you guys (and gals) think (if you care to go out on a limb) the Fed is going to do next week? IMO, dropping rates is unlikely, pausing/holding (maybe), increasing rates another 1/4 point is likely. .

I think most "supposed" experts believe they'll hold at this next meeting and give it a wait and see until the next meeting. I tend to agree.

 

[jldavid47]

fidelity MM FZDXX was 4.9% yesterday

Schwab's SWVXX is at 4.93%. In our taxable account I still prefer T-Bills to SWVXX. Not only is the rate higher but the after-tax differential is even larger as we do not pay state income tax on T-bill interest.

 

[jazz4cash]

Interesting as one can buy a brokered Ally Bank CD on Fidelity for 18 months for 5.15%. Non callable.

I bought that one. I don’t normally bother with an 18 month term except to match a known expense (property taxes) within 24 mos. I think the spread of 15 bps is pretty narrow if you are already using Ally. I’m done with having an account there.

 

[GenXguy]

I think most "supposed" experts believe they'll hold at this next meeting and give it a wait and see until the next meeting. I tend to agree.

Yeah, seems like most people here would agree with or parrot what they hear/read from the supposed "experts". I would prefer they increase it - they were too late to the game and year over year inflation is still very high above the 2% target and unemployment very low. Even if inflation dropped to 2% eventually, that doesn't mean prices drop on average, it means they are still going up, despite what the media or politicians might want you to believe or don't understand themselves.

 

[njhowie]

just saw this one.. thought the JPM fans might be interested. Never checked into one of these step up ones before.. so i would be interested to hear the comments pos/neg about it.

https://www.sec.gov/Archives/edgar/data/19617/000121390023043239/ea155370_424b2.htm

On the 13th calendar day of June and December of each year, beginning on June 13, 2025 and ending on December 13, 2032

From (and including) To (but excluding) Interest Rate
June 13, 2023 June 13, 2028 5.50% per annum
June 13, 2028 June 13, 2031 6.00% per annum
June 13, 2031 June 13, 2032 7.50% per annum
June 13, 2032 June 13, 2033 9.00% per annum

(also coming soon)
https://www.sec.gov/Archives/edgar/data/1665650/000121390023043332/ea155368_424b2.htm

I believe this is not the thread for discussing these. These are essentially bonds. They are certainly not CDs and they carry no assurance/insurance of principal or interest.

 

[Freedom56]

just saw this one.. thought the JPM fans might be interested. Never checked into one of these step up ones before.. so i would be interested to hear the comments pos/neg about it.

https://www.sec.gov/Archives/edgar/data/19617/000121390023043239/ea155370_424b2.htm

On the 13th calendar day of June and December of each year, beginning on June 13, 2025 and ending on December 13, 2032

From (and including) To (but excluding) Interest Rate
June 13, 2023 June 13, 2028 5.50% per annum
June 13, 2028 June 13, 2031 6.00% per annum
June 13, 2031 June 13, 2032 7.50% per annum
June 13, 2032 June 13, 2033 9.00% per annum

(also coming soon)
https://www.sec.gov/Archives/edgar/data/1665650/000121390023043332/ea155368_424b2.htm

The note can be called in 2025 so it's like a hedge against rates continuing to climb to over 10% over the next 10 years.

 

[lordjust]

I believe this is not the thread for discussing these. These are essentially bonds. They are certainly not CDs and they carry no assurance/insurance of principal or interest.

Sorry nj you’re correct. I have two tabs open and I pasted into the wrong one.

 

[RetiredAndLovingIt]

Michigan 5.25% Cd With Add-ons And No-Penalty Withdrawals

Sharing from Deposit accounts

https://www.depositaccounts.com/banks/advantage-one-cu/offers/

 

[braumeister]

Just noticed that PenFed is finally joining the move on their money market certificates.

1 year 4.60%APY
15 months 4.65%APY